News:
Monday was a day on Wall Street!
The Nasdaq slid nearly 5% before markets staged a late-day comeback. All major indexes closed in the green.
During the intra-day session, the S&P 500 fell into correction territory while the Russell 2000 fell into a bear market.
The positive close could indicate a near-term bottom. But the volatility is far from over. Futures are deep in the red at writing but looking to stage another comeback
The volatility often precedes the FOMC meetings which start today.
Fed chair Powell will speak tomorrow afternoon at the conclusion of the meeting. I expect he can calm the market some.
Technicals:
The markets are extremely oversold at the moment.
That’s likely the reason the markets bounced so hard at the end of the day yesterday.
While markets can go in any direction as long as they want, historically there have been limits.
Image the market as a rubber band. It can only stretch so far before it needs to release the pressure. Once the pressure is released it has more freedom to continue its trend…
The rubber band is still stretched out…
Timing:
As January goes so goes the year … Nothing more to report.
I’m still in a wait-and-see mode this morning.
Watchlist:
*IMTE is on watch
*APM is on watch
*GMVD has support at $4
*PIXY has resistance at $1.80
LLNW has support at $4
KSS has resistance at $64